• Tue. Dec 5th, 2023

Exclusive Talks Underway about Selling Telkom South Africa’s Tower Business


Nov 21, 2023

Telkom, South Africa’s third-largest telecom company, is in exclusive negotiations with a preferred bidder for the potential sale of its masts and towers business, Swiftnet. The consortium of equity investors, with a Black Economic Empowerment partner, is leading the bid.

As part of its reorganization, Telkom is transitioning itself into an infrastructure company to drive strategic growth through consolidating core assets. This move reflects the company’s efforts to reposition itself and drive strategic growth by exploring potential sales and partnerships to unlock the value of its business divisions.

Telkom has spun off its telecom towers and masts into a separate unit to explore options to unlock the undervalued business because it is trapped in the group structure. The reorganization process is expected to be fully operational by the end of 2025. Once the infrastructure company structure is in place and the masts and towers transition is concluded, Telkom will consider further opportunities to realize value, including minority partnerships for Openserve and a strategic equity partner for BCX – its fibre and ICT businesses.

Overall, Telkom is working towards a stronger and more efficient business model in the future as it continues to explore potential sales and partnerships that will help it unlock value from its business divisions.

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